The National Biodiesel Board (NBB) testified this week to the Senate Finance Committee about the importance of reinstating the industry’s tax incentive. The $1-per-gallon biodiesel tax incentive expired on Dec. 31 for the second time in three years.
Anne Steckel, NBB vice president of federal affairs, said in her testimony, that when the incentive was reinstated last year after a lapse in 2010, it helped boost biodiesel production to a record volume of nearly 1.1 billion gallons in 2011. That volume – triple the production of 2010 – supported more than 39,027 jobs and $3.8 billion in GDP, according to a recent study conducted by Cardno ENTRIX, an international economics consulting firm.
“The biodiesel industry is poised to continue that momentum so long as Congress and the Administration continue supporting strong policies such as the biodiesel tax incentive,” Steckel said. “The recent expiration of the $1 per gallon biodiesel tax incentive poses a significant threat to the industry’s continued growth.”
Under projected expansion, with the tax incentive in place, the industry is expected to support more than 74,000 jobs by 2015 and some $7.3 billion in GDP.
Bipartisan legislation has been introduced in the House and Senate to extend the tax incentive for three years.